Banks responsible for fake notes in ATMs: RBI Director

Reserve Bank of India (Rbi) Regional Director (Andhra Pradesh) K R Das on Wednesday advised people to approach the concerned bank if they find fake notes in the ATM.

Stating that as per the new Rbi guidelines, the banks are responsible for the fake currency notes coming out of their ATM machines and they should compensate the same amount to the customers. Addressing a press conference here, Das said that banks are accountable for the errors or irregularities in the cash management system, which is outsourced in loading of currency in bank ATMs.

As per the new Rbi guidelines, not only reporting the fake notes to the police is compulsory, but an FIR has to be issued if the customer gets four or more fake notes from the ATM in a single transaction. Therefore, Das said the banks must verify the genuineness of all currency notes, before they are fed into the ATMs. However, he said that banks were not responsible for the fake notes outside the banking system.